Former FTC chair blames Xbox Game Pass price hike on the size of Microsoft

Microsoft set the internet ablaze last week when it announced it was raising the price of Xbox Game Pass by 50%, resulting in many subscribers abandoning the Ultimate tier to move down one.

Lina Khan, the former chair of the Federal Trade Commission, has commented on the recent price hike, saying Microsoft's decision to increase prices is part of its dominance as a company, and that it's simply become "too-big-to-care" about any consequences from its customers since it has so many. Notably, Khan was the chair of the Federal Trade Commission (FTC) at the time of Microsoft's $67 billion acquisition of Activision Blizzard, which the FTC opposed by claiming it would "harm competition in multiple dynamic fast-growing gaming markets".

Khan gave her statements in an X post where she responded to a post outlining the rising cost of Game Pass Ultimate since it was released. The original poster cites Microsoft stating in 2023 that subscription prices would not increase as a result of the Activision Blizzard acquisition. However, the FTC's challenge to prevent the merger was rejected by Judge Scott Corley.

Microsoft has seemingly gone back on what it said previously, and has been in the midst of a slow price increase of its subscription service while simultaneously bolstering it with more value for customers.

"Microsoft's acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers. As we've seen across sectors, increasing market consolidation and increasing prices often go hand-in-hand. As dominant firms become too-big-to-care, they can make things worse for their customers without having to worry about the consequences," wrote former FTC chair Lina Khan